Clarizen Blog

When Outsourcing Makes Sense

The idea of outsourcing has long been a debatable topic, but with 24% of employed people doing some or all of their work from home, your best talent might be sitting in their own living room. There are many ways in which freelancers make more sense than in-house employees, so it’s best to explore the benefits of outsourcing before making a final decision.

Cost Savings

The easiest to address is the most obvious. A contractor doesn’t require the benefits, supplies or any other expenses related to a full-time employee. Contractors generally charge a set fee or rate that accounts for zero downtime so labor fees are always going directly to productive times of industry.

Accessing Skilled Experts

Recruiting and training employees can be a costly expense but hiring a contractor gives you access to skilled experts immediately. Companies can pick and choose their professionals in the digital arena without the overhead costs of adapting them to the job. There are a variety of platforms online where you can find a skilled employee based on their credentials and experience.

Flexible Staff

There is a diversity of advantages to accessing an international network of laborers. Time zone differences mean you have a greater pool of people to choose from that work all the different hours of the day. If a project needs to be done ASAP, a freelancer can be working on it while you sleep. Many people that telecommute are also to able to work earlier, later or longer hours as they generally do not leave their homes.

Increase Efficiency

Contractors largely charge by the project—or if they work an hourly rate, they do not include lengthy breaks or lunches. This greatly increases employee productivity which leads to higher efficiency and increased ROI. Cutting out the need for training or staff development also creates a more streamlined workflow on projects.

Reduces Overhead

Outsourcing work to a contractor means you typically don’t need to give them a desk. If there are overhead costs for performing back-office functions, this is when hiring a contractor is highly beneficial. Simple operational tasks completed by an off-site employee saves on office space, supplies and other resources that can be put back into the in-house population.

Risk Management and Continuity

If there are periods of high employee turnover, this can add to the uncertainty or inconsistency of a project. Turnover does not necessarily mean people are leaving. Vacations, pregnancy leave, bereavement and holidays are all great times to consider outsourcing (rather than training and developing new staff for temporary situations). Outsourcing in this sense reduces the risk and allows operations to continue in as streamlined a manner as possible.

Strategic outsourcing is not a new concept. It’s all about recognizing when and where a contractor may be the best fit over a current or potential employee. The benefits of outsourcing should always be considered when you have a large task at hand, requiring skilled employees, with a smaller budget or minimal time. This is truly when the labor resource will shine.